Mr. HammillMr. Hammill

Essential QuestionEssential Question

How did the changes in technology and

business impact the economic, political, and social life of the United

States?

How did the changes in technology and

business impact the economic, political, and social life of the United

States?

Causes of Industrial Growth

Causes of Industrial Growth1. Steam Revolution of the 1830s-1850s

2. The Railroad fueled the growing US economy:

First big business in the US. The key to opening the West. Took advantage of mid-west farmers Responsible for creation of Interstate

Commerce Act (1887) Aided the development of other

industries. Reason for standardized time zones

(1918)

1. Steam Revolution of the 1830s-1850s

2. The Railroad fueled the growing US economy:

First big business in the US. The key to opening the West. Took advantage of mid-west farmers Responsible for creation of Interstate

Commerce Act (1887) Aided the development of other

industries. Reason for standardized time zones

(1918)

Causes of Rapid IndustrializationCauses of Rapid Industrialization3. Technological innovations. Edwin L. Drake steam engine drill for oil Bessemer Process making

steel by injecting air into iron Thomas Edison

o Light bulbo Phonographo motion pictures.

3. Technological innovations. Edwin L. Drake steam engine drill for oil Bessemer Process making

steel by injecting air into iron Thomas Edison

o Light bulbo Phonographo motion pictures.

Edwin L. DrakeEdwin L. Drake

1st Oil Producing Well (1859)

1st Oil Producing Well (1859)

Thomas Alva EdisonThomas Alva Edison

“Wizard of Menlo Park” “Wizard of Menlo Park”

The Light Bulb (1879)The Light Bulb (1879)

The Phonograph (1877)The Phonograph (1877)

The Motion Picture CameraThe Motion Picture Camera

Video Clip: Thomas Edison

• Alexander Graham Bell• Alexander Graham Bell

Telephone (1876)Telephone (1876)

• The Airplane• The Airplane

Wilbur Wright Orville Wright Wilbur Wright Orville Wright

Kitty Hawk, NC – December 7, 1903 Kitty Hawk, NC – December 7, 1903

• Model T Automobile• Model T Automobile

Henry FordI want to pay my workers so that they

can afford my product!

Henry FordI want to pay my workers so that they

can afford my product!

“Model T” Prices & Sales

“Model T” Prices & Sales

Captains of Industryor

Robber Barons?

Unskilled & semi-skilled labor in abundance.

Market growing as US population increased.

Abundant natural resources.

Unskilled & semi-skilled labor in abundance.

Market growing as US population increased.

Abundant natural resources.

Causes of Rapid IndustrializationCauses of Rapid Industrialization

3. Horizontal Integration - John D. Rockefeller

3. Horizontal Integration - John D. Rockefeller 4. Vertical Integration:

o Gustavus Swift Meat-packingo Andrew Carnegie U. S. Steel

4. Vertical Integration:o Gustavus Swift Meat-packingo Andrew Carnegie U. S. Steel

Big BusinessBig Business

1. Laissez Faire the ideology of the Industrial Age.

1. Laissez Faire the ideology of the Industrial Age.

Individuals should compete freely in the marketplace.

No room for government in the market!

If no government regulation what will happen??????

Individuals should compete freely in the marketplace.

No room for government in the market!

If no government regulation what will happen??????

2. Social Darwinism2. Social Darwinism

Adapted Charles Darwin’s ideas from the “Origin of Species” to humans.

Notion of “Survival of the Fittest.”

Adapted Charles Darwin’s ideas from the “Origin of Species” to humans.

Notion of “Survival of the Fittest.”

Herbert Spencer(English Philosopher)

Herbert Spencer(English Philosopher)

2. Social Darwinism in America2. Social Darwinism in America

Andrew CarnegieYale University (1906)

Andrew CarnegieYale University (1906)

$ Individuals must have absolute freedom to struggle, succeed or fail Individualism

$ Government should not interfere

$ Individuals must have absolute freedom to struggle, succeed or fail Individualism

$ Government should not interfere

New Business Culture:“The American Dream?”

New Business Culture:“The American Dream?”

3. Individualism Horatio Alger [100+ novels] rags to riches novels involving the poor going to the big city to strike it rich

3. Individualism Horatio Alger [100+ novels] rags to riches novels involving the poor going to the big city to strike it rich

Is the idea of the “self-made man” a MYTH??

Is the idea of the “self-made man” a MYTH??

The Gospel of Wealth:The Gospel of Wealth:

Andrew CarnegieAndrew Carnegie

The Anglo-Saxon race is superior.

“Gospel of Wealth” (1901). Inequality is inevitable and

good. Wealthy should act as

“trustees” for their “poorer brethren.”

The Anglo-Saxon race is superior.

“Gospel of Wealth” (1901). Inequality is inevitable and

good. Wealthy should act as

“trustees” for their “poorer brethren.”

New Type of Business EntitiesNew Type of Business Entities

1. Trust (1882) group of organizations formed to limit competition by controlling the production and distribution of products and services.

1. Trust (1882) group of organizations formed to limit competition by controlling the production and distribution of products and services.

John D. Rockefeller

- Standard Oil Company

John D. Rockefeller

- Standard Oil Company

Standard Oil Co.Standard Oil Co.

5. Steel Industry5. Steel Industry• Andrew CarnegieAndrew Carnegie (1835-1919) (1835-1919)

– Began in Began in Railroad IndustryRailroad Industry– He decided to get into the steel He decided to get into the steel

business and opened a company in business and opened a company in PittsburghPittsburgh in 1875 in 1875

– Soon owned most the worlds steel Soon owned most the worlds steel industry!!industry!!

Wall Street – 1867 & 1900

Wall Street – 1867 & 1900

The Reorganization of Work

The Reorganization of Work

The Assembly LineThe Assembly Line

The Protectors of Our Industries

The Protectors of Our Industries

The ‘Robber Barons’ of the Past

The ‘Robber Barons’ of the Past

2. Monopolies and Trusts2. Monopolies and Trusts

• Late 1800s—Americans Late 1800s—Americans become become suspicious suspicious of large of large corporationscorporations

• Power of monopolies was Power of monopolies was fearedfeared

• Wanted to prevent Wanted to prevent horizontal horizontal integrationintegration

Regulating the TrustsRegulating the Trusts

1890 Sherman Antitrust Act Made it illegal to form a trust that

interfered with free trade between states or with other countries

Labor Unions start to Emerge to fight for the rights of workers since the government was not going to regulate business.

1890 Sherman Antitrust Act Made it illegal to form a trust that

interfered with free trade between states or with other countries

Labor Unions start to Emerge to fight for the rights of workers since the government was not going to regulate business.